President Donald Trump has publicly endorsed the U.S. Commodity Futures Trading Commission’s (CFTC) jurisdiction over decentralized prediction markets. As tensions persist between the federal government and some state governments concerning prediction markets, Trump’s stance is viewed as effectively supporting the industry’s growth.
On Tuesday, The Block reported that Trump declared via Truth Social that it is crucial that the CFTC’s exclusive authority over prediction markets is maintained, adding that it must ensure that prediction markets can flourish.
Michael Selig, the CFTC commissioner appointed by Trump, recently asserted the CFTC’s exclusive jurisdiction over prediction markets and initiated legal action against five states: Wisconsin, Illinois, Arizona, Connecticut, and New York.
Commissioner Selig maintains that since prediction markets fall under federal commodity trading regulations, the CFTC should retain supervisory authority. On the other hand, some state governments argue that prediction market platforms based on sports events or political occurrences essentially amount to gambling and raise concerns about potential violations of state laws.
Prediction market platforms such as Polymarket and Kalshi have experienced rapid growth since the 2024 U.S. presidential election. Users engage in trading by placing bets on the outcomes of various events, including election results, economic indicators, and sports matches.
In his post, Trump also voiced support for the cryptocurrency industry.
He stressed that other nations are vying to dominate this new financial market, and the U.S. must maintain its leadership, asserting that the U.S. is currently the global cryptocurrency capital, and while other countries may attempt to supplant it, it won’t allow that to happen.